Green Term Ahead Market (GTAM) UPSC

Green Term Ahead Market (GTAM)

The Indian Government has recently launched Green Term Ahead Market (GTAM). It is considered to be India's first step towards Greening short term power market in India. This will be pan-India portal which would enable purchasers and sellers of renewable energy to do purchase/sell electricity for a short term purposes in the open market. 

About Green Term Ahead Market (GTAM) 

• Presently, the generators of the Renewable energy rely on long term Power Purchase Agreements (PPAs) with the DISCOMs to sell the electricity which they generate. 

• Now, GTAM would provide power generators with alternate option to sell the electricity to various bulk consumers such as Industries, DISCOMs etc. for a short period of time without getting into PPAs. 

• It is considered to be world's first exclusive product which has been designed for the benefit of Renewable energy. 

Benefits of Green Term Ahead Market (GTAM)

• Renewable energy projects such as Wind, Solar etc. are mainly concentrated in some of the states such as Karnataka, Gujarat, Tamil Nadu etc., while other states are quite poor in renewable energy. Hence, GTAM would lessen the burden on RE-rich States, enable them to sell electricity to resource poor states and thus incentivize them to develop their capacity beyond their own Renewable purchase obligation (RPO). 

• Benefit buyers of RE through competitive prices and transparent and flexible procurement. It will also benefit RE sellers by providing access to pan- India market. 

• Enable Obligated entities to procure renewable power at competitive prices to meet their Renewable Purchase Obligations (RPO). 

• Provide a platform to environmentally conscious open access consumers and utilities to buy green power. 

What is Renewable Purchase Obligation ? 

• DISCOMs required to purchase certain percentage of electricity from various renewable energy sources. 

• Framework for RPOs? 

Laid down under Electricity Act, 2003 and National Tariff Policy 2016. 

• Types of RPOs: 

Solar RPO and Non-Solar RPO. Recently, Government declared that procurement of power from large Hydropower Projects (more than 25 MW) and Ocean Energy would be considered as Non-Solar RPO. 

• Who lays down the Targets for RPOs? 

Annual Targets laid down by State Electricity Regulatory Commissions (SERCs). Long term targets laid down by Ministry of Power. 

• Present Targets: Long Term target to be met by 2022. 

Total RPO: 21% (Solar RPO: 10.5% + Non-Solar RPO: 10.5%) 

• Renewable Energy Certificates (RECs): 

DISCOMs that exceed their RPO obligations can sell RECs to other DISCOMs that fail to meet RPO target. 1 REC is equal to 1 Mwh.